Branch Office

A branch office is an extension of a parent company that is formally registered in a foreign country to conduct business activities there, without being incorporated as a fully separate legal entity like a subsidiary. A branch office typically operates under the same legal identity as its parent company, meaning the parent bears direct liability for the branch's activities and obligations in that country. Setting up a branch office generally involves less complexity than establishing a wholly owned subsidiary, but it still requires formal registration with local authorities, compliance with local tax and reporting requirements, and adherence to the target country's employment laws if the branch plans to hire staff directly. The specific rules governing what activities a branch office can perform vary significantly by country. Because branch offices still carry meaningful setup time and compliance obligations, many companies looking for a faster or lower-risk way to establish a presence and hire employees in a new country choose to work with an Employer of Record instead. An EOR allows a company to legally employ workers in that country without registering any kind of local entity, whether a branch office or a subsidiary.